Chief Executive Officer of the Association of Ghana Industries (AGI), Seth Twum Akwaboah, has iterated that the Association hasn’t proposed a withdrawal of the benchmark value policy.
According to him, the Association is rather advocation for a retention in the policy on products which are locally produced.
Reacting to a statement by the Ghana Union of Traders’ Association which stated that a reduction will be “suicidal”, Mr Akwaboah, explained that a general reduction in the policy will also put local manufacturers on the losing end.
Mr Akwaboah emphasized the need for a review of the benchmark policy in order to help struggling businesses.
“I think AGI’s position on the benchmark value reduction has never changed. It’s been so since the very onset when it was announced. Our position has been very clear that you don’t need to reduce the benchmark value for all products. Products that we have local capacity to produce let the benchmark value be retained. Those that we don’t have the local capacity to produce, we can reduce it to whatever level.
“So, I think that is the essence of it. The reason is simple, if you reduce the benchmark values that way… what happened was that we had import duties on those products reduced by half. It made the products much cheaper than it was before and that puts the pressure on local manufacturers. Once they cannot compete, their market size dwindles. And eventually they may even collapse as it’s happening in some of the product areas.
“We are not asking for a total withdrawal of that policy. We are asking for a review and the review should be such that it should support local industries. So, that is all that it’s about and we keep making this point”.
Seth Twum Akwaboah
Review of benchmark policy
Commenting on whether there has been calls to government on the review of the benchmark policy, Mr Akwaboah noted that petition has been made to relevant stakeholders.
He further revealed that an appeal has been made to Ghana International Trade Commission and the Ministry of Trade.
Additionally, he explained that such appeal is relevant in ensuring the interest of the country, businesses and industries is achieved.
“It is also very much in the interest of job creation. Government has made it [possible to] create jobs and support industrial development… So, if the very objective we have is being derailed by other policies that government is coming up with, it must be pointed out. So, we have made petitions to these outfits”.
Seth Twum Akwaboah
GUTA warns against benchmark policy reduction
GUTA in a press statement, cautioned against a reduction in the policy. According to its President Dr Joseph Obeng, the policy brought relief to the trading community and eased tension and agitations on cross-border trade.
“Any attempt to remove this good policy of the government that brought relief will be suicidal for the state because it will not only collapse business but also cause an unbearable rise in prices of goods and services beyond the reach of consumers, especially, low-income earners and the unemployed”.
Dr Joseph Obeng
Earlier in August, the Ghana Revenue Authority also hinted of its plans to review 50% reduction on benchmark value policy on selected items at the ports.
GUTA’s President commenting on the plans then suggested that government should rather resolve its internal challenges such as leakages in the form of “warehousing, tax exemption policy and goods in transit”.
